Federal Signal Corporation Announced Acquisition of Substantially All of the Assets of Athey Products Corporation
Federal Signal Corporation announced that on March 5, it completed the acquisition of substantially all of the assets of Athey Products Corporation. Federal Signal, which also owns Elgin Sweeper and Five Star Manufacturing (part of the Environmental Products Group) stated that the decision to acquire Athey, who filed a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code on December 8, 2000, was a strategic move to improve its leadership position of the FS subsidiaries serving similar markets.
According to Shawn Casey, Group President of the Environmental Products Group, "Athey has had a very difficult time financially for the past several years and despite the strong brand recognition in both government and contractor marketing, has been unable to reverse this trend. We too recognize the challenges inherent in reversing this situation and have therefore determined that the ongoing production of sweepers will cease immediately upon fulfilling current customer obligations under the terms of the sale of the company. We will continue to take orders for service parts and provide warranty and other service relating to product support under the Athey and Mobil name. To smooth the transition, the current Athey dealers will continue to provide customers with parts and warranty until April 5, 2001."
Steve Baker, Vice President Sales and Marketing of the Environmental Products Groups, noted "Improved and uninterrupted support for Athey customers is our primary objective during this transition. Therefore, interim processes have been established to facilitate the ordering of service parts and warranty support. Additionally, relationships with Athey parts suppliers that were discontinued during the bankruptcy period are being reestablished and emphasis is again being placed on parts manufactured in-house".
"The Environmental Products Group has a worldwide dealer network second to none and we stand ready and willing to provide the necessary support to keep these customers satisfied" Baker stated. "Each customer will be personally contacted within the next few weeks by one of our representatives and will receive detailed information about the acquisition and the service and ongoing support that we can provide, on Athey products including a listing of Elgin/Five Star dealers in their area and a toll free 24-hour service number".
Elgin Sweeper Company, 1300 W. Bartlett Rd., PO Box 537, Elgin, IL 60121-7529. Tel: 847-741-5370; Fax: 847-742-3035.